Cost Basis

Definition

  • The price you originally paid for an investment. This is also known as the basis or tax basis. The cost basis includes any commissions or fees you paid when you purchased the investment.

Synonyms
original price, purchase value, tax basis

Related Terms and Acronyms

  • Basis Definition,
    • That on which a thing rests or is founded.
    • Relating to cost basis, this is the amount assigned to an asset from which a taxpayer determines capital gain or loss. For assets purchased, the basis is the price paid. Special rules apply to assets acquired through gift or inheritance, as well as to the value of stock funds held for a period during which earnings are reinvested.
  • Investment Definition,
    • Something you put your money into in order to make money.
  • Rate of Return (RR, ROR) Acronym, Important,
    • The profit an investment generates, expressed as equity divided by cash flow.
  • Return on Assets (ROA) Acronym,
    • A ratio that shows how profitable a company is when compared to its assets.
  • Return on Investment (ROI) Acronym, Very Important,
    • The profit an investment generates, expressed as equity divided by cash flow.
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